Varto Company has $9,400$ units of its product In Inventory that it produced last year at a cost of $$159,000.$ This year's model is better

than last year's, and the $9,400$ units cannot be sold at last year's normal selling price of $$44$ each. Varto has two alternatives for these

units:

$(1)$ They can be sold as is to a wholesaler for $$131,600$ or

$(2)$ they can be processed further at an additional cost of $$184,700$ and then sold for $$310,200.$

$($a$)$ Prepare a sell as is or process further analysis of Income effects.

$($b$)$ Should Varto sell the products as is or process further and then sell them?

$($b$)$ The company should: